Regulatory Action

SEC Issues Warning Regarding Celebrity-Promoted Coin Offerings and Moves Swiftly Against Unregistered ICOs

The Securities and Exchange Commission (SEC) recently issued two warnings about investments sold on the basis of celebrity endorsements, including one relating to initial coin offerings (ICOs), and followed up with enforcement actions against unregistered ICOs. Investors can be misled by biased promotions. Receipt of cash or other consideration in…

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SEC Issues Cease and Desist Order and Further Guidance on ICOs

On December 11, 2017, the U.S. Securities and Exchange Commission (SEC) issued a cease-and-desist order to Munchee Inc. (Munchee), a company that was in the process of a $15 million initial coin offering (ICO), for selling unlicensed securities. The SEC found that the ICO targeted investors, with the expectation of…

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Israeli Regulators to Decide Regulatory Fate of ICOs in December

On August 30, 2017, the Israeli equivalent of the U.S. Securities and Exchange Commission, the Israeli Security Authority (“ISA”) announced it had formed a committee to study whether, and how, to apply Israeli securities laws to initial coin offerings (“ICOs”).  Specifically, the ISA stated it would examine six issues related…

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CFTC Reaffirms Stance on Digital Currencies; Expresses View on DLT and ICOs

Pursuant to its LabCFTC initiative, the regulator issued a FinTech Primer on virtual currencies, including addressing the jurisdictional reach of the CFTC and the SEC (and potential overlap). Several questions remain regarding the already uncertain status of ICOs under the federal securities and commodities laws and regulations. WHAT HAPPENED? On…

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Fondo talks ICOs with theCUBE

Goodwin partner and chair of the firm’s digital currency + blockchain technology practice, Grant Fondo, sat down with John Furrier at theCUBE last week to discuss the current landscape for Blockchain and Initial Coin Offerings (ICOs). theCUBE is a leading, live-interview show based in Palo Alto, CA, that covers developments…

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Recent Cases Demonstrate Need for Blockchain

A recent Delaware bill is poised to allow private Delaware corporations “use networks of electronic databases (examples of which are described currently as “distributed ledgers” or a “blockchain”) for the creation and maintenance of corporate records, including the corporation’s stock ledger.”  The bill is a significant step towards the mainstream…

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